Peltz on Legg: Sullivan Is the Clear Winner

The activist investor, who owns a 10% stake in the firm, says he's "thrilled with the choice."

It's far from a clean bill of health, but at least ailing fund firm Legg Mason (ticker: LM) has the prescription in hand. The $654 billion asset manager on Wednesday announced the conclusion to its five-month search for a chief executive, naming Joseph Sullivan, Legg's interim CEO and former head of global distribution.

Legg's search for a CEO -- triggered when former CEO Mark Fetting was encouraged to...